By James Wells
Retravision CEO Paul Holt says he is seeking an “orderly transition” for the 180 stores to new buying groups following the decision to wind down the existing business and transfer the brand to Narta by April 2013.
"It is now about the competency of the groups to take over the transition program and make this as easy and as safe for as many members that we can bring across," Holt said.
"We want the Retravision business that exists to transition with clean hands, with a clear plan, with all debts paid in full to retain our integrity and work in partnership with Narta, through its group of companies, and an affiliation with the Leading Edge group to provide a safe haven for these stores and to manage an orderly transition," he said.
As far as Holt's job is concerned, he has admitted that he has effectively made himself redundant as a result of the transition of the stores to the new buying platform.
"I am committed to supporting this transition and finding homes for the retailers for as long as I am required… and I will work out what to do next at an appropriate time. We will be around for the next few months to migrate the business in a planned, orderly and effective way.”
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Of the 180 Retravision stores currently trading, 70 stores trading above $4 million are likely to join the Narta group. Of these 70 stores, approximately 25 stores trading above $5 million and predominantly located within the Retravision Western group will be offered the opportunity to trade as Retravision, which will be a Narta-owned brand from 1 April 2013.
The remaining 45 stores, trading above $4 million will be offered the opportunity to join Betta Home Living or Kambo's in the West Australian market while stores in the Eastern States will be offered the opportunity to join either Betta Home Living or Bi-Rite Electrical.
There are approximately 110 Retravision stores from the Western group, as well as on the Eastern Seaboard, which are currently trading with turnover below $1.5 million annually. It is expected that these stores will be offered the opportunity to join the Leading Edge Electronics buying group.
Correspondence to the 180 stores advising which buying group and which brand they have been invited to join is expected to be delivered over the coming weeks.